The California Legislature passed SB 401 (Wolk) April 8th, 2010, a measure providing tax relief on mortgage debt forgiven in a short sale.
Thousands of California home owners including Downtown San Diego Condo and Downtown San Diego Loft home owners whose homes were foreclosed on or sold at a loss would get tax relief under this measure. It is expected to affect about 34,000 taxpayers.
Governor Arnold Schwarzenegger said he would sign the measure, which would also provide about $60 million in tax credits to green-energy companies, when it reached his desk.
Californians can already claim the tax breaks on federal returns. Lawmakers passed the measure in time for people to take advantage of it by the April 15 deadline for filing tax returns.
To learn more about this visit tax break. ')}